Mizuho maintains Palo Alto Networks stock rating on strong earnings

Published 19/08/2025, 12:24
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Investing.com - Palo Alto Networks (NASDAQ:PANW), currently trading at $176.17 with a market capitalization of $117.55 billion, received a reiterated Outperform rating and $210.00 price target from Mizuho (NYSE:MFG) following the cybersecurity company’s fourth-quarter fiscal results. According to InvestingPro analysis, the company is currently trading above its Fair Value.

The company reported revenue growth of 16% year-over-year, exceeding both Mizuho’s and Wall Street’s expectations of approximately 14%. Product growth was particularly strong at 19% year-over-year, significantly outpacing the Street’s forecast of 15%, while Subscription/Support revenue increased 15% year-over-year. The company maintains a robust gross profit margin of 73.56% and has achieved a 13.91% revenue growth over the last twelve months.

Palo Alto Networks’ remaining performance obligations (RPO) grew 24% year-over-year, substantially beating the company’s guidance of 19%-20% growth. The firm’s fiscal year 2026 guidance exceeded market expectations. InvestingPro data reveals 12+ additional insights about PANW’s financial health, which currently rates as GOOD with a score of 2.96.

Management projected stronger-than-expected fiscal year 2028 free cash flow margins of over 40%, inclusive of the pending CyberArk (NASDAQ:CYBR) acquisition. Mizuho views the CyberArk acquisition as "a phenomenal asset at a very reasonable price tag."

Mizuho remains optimistic about Palo Alto Networks’ improving mix shift toward higher-growth recurring revenue and believes the company "clearly possesses the strongest array of cloud assets among traditional network security vendors."

In other recent news, Palo Alto Networks reported strong fourth-quarter results, exceeding expectations across multiple metrics, including total revenue and remaining performance obligations (RPO). Piper Sandler reiterated an Overweight rating on the company, emphasizing accelerating trends in key performance indicators. BofA Securities upgraded its rating to Buy, citing a 32.2% year-over-year growth in Next-Generation Security Annual Recurring Revenue (NGS ARR), which slightly surpassed Street estimates.

UBS raised its price target for Palo Alto Networks to $200, noting the company’s performance as a positive shift following its Cybr acquisition. Evercore ISI maintained its Outperform rating, highlighting the significant role of software firewalls, which accounted for 56% of product revenue in the quarter. KeyBanc also noted the firm’s resilience amid sector challenges, with strong product revenue and operating margin performance. These developments reflect a strong outlook for Palo Alto Networks, as observed by various analysts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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